"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

In escrow

I don't normally deal in wild rumors, but this snippet of information is very intriguing, if true. It does not concern Tampines Court, but one of our half-sister estates: LAGOON VIEW. This estate is only a half-sister because their land belongs to the Ministry of Finance and has not been privatised as yet (at least, no notice of such an event has been reported in the media). Their privatisation cost is around $30k per unit and when last reported (Weekend Today Jul 2009) just over 70% had consented. No collective sale can be attempted unless the estate is first privatised.

The rumour is this: owners who sign for privatisation are also possibly signing for the CSA in escrow ... or it could be the other way round, the Privatisation Agreement could be the document held in escrow because it's cost might be a stumbling block to many older owners in the estate, and the CSA might be a draft CSA not yet ratified at an EGM.
The details are sketchy at best.

What is in escrow, you ask? It's 'Something of value, such as a deed, stock, money, or written instrument, that is put into the custody of a third person by its owner, a grantor, an obligor, or a promisor, to be retained until the occurrence of a contingency or performance of a condition.'

But, there is only a privatisation committee in Lagoon View as far as I know, there is no elected sale committee, no EGMs held in accordance with the LTSA schedules etc... so how can it be true and if so, is it really legal?

Well, I can only surmise that as soon as the 75% /80% mark is reached, the statutory requirements will be dealt with in quick succession and so the conditions for the CSA/Privatisation Agreement held in escrow will be met.

It's like giving birth to an adult instead of a baby.

Not being a lawyer, I can only pose questions, not answer them.  In round 1 we had a few 'conditional' signers who would have received higher sales proceeds had their conditions for sale been met. In round 2, there are provisions in the CSA (Draft 28 Sep 2011) for owners to sign an unspecified 'supplementlal agreement.

Document held in escrow, conditional agreement, supplemental agreement.... all birds of the same feather?

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